Clontarf Regulatory News (CLON)

15 Jun 2006 07:30

Persian Gold PLC15 June 2006 Persian Gold Preliminary Results for the year ended 31 December 2005 Persian Gold, the AIM listed minerals explorer focused on Gold and Iran ispleased to announce Preliminary Results for the year ended 31 December 2005 Highlights • AIM listing and placing of equity in June 2005 raising £1m • Experienced Iranian based geological team recruited, supplemented by external specialists as and when necessary • Early stage exploration for gold associated with silica and alunite in the Takestan region has developed into trenching and detailed sampling. • Further north, in Zehabad, a 900,000 ton 11% lead zinc ore body with gold grades of 1g/t and silver grades of 40g/t is being mapped and sampled. • A significant gold exploration resource has been optioned in the Yazd area. An intensive exploration programme is underway. Financials • Loss before tax of £162,204 • Current operations fully funded • Minimal overheads allows enhanced spending on operational capacity Outlook • Drilling expected to commence on Takestan projects Q3 2006 • Decision on Yazd to be announced prior to end 2006 • Base metal projects under evaluation • Ongoing appraisal of new projects / opportunities John Teeling, Executive Chairman of Persian Gold, Commented: "This has been a very promising year for Persian Gold. We have a genuine firstmover advantage in Iran which we have found to be a highly prospective regionwith an excellent operating environment. We look forward to updating the market on our exploration operations later thisyear and hope to be able to announce further positive news. With our combinationof attractive exploration assets and experienced on the ground staff, PersianGold offers exciting investment potential for the London Market." 15th June 2006 For further information please contact Persian Gold PLC John Teeling, Executive Chairman +35318332833 College Hill Paddy Blewer 020 7457 2020 Nick Elwes Rowan Dartington Ian Rice 01179 330 020 Chairman's Statement Iran is a proven mineral province which, due to its recent history, remainsunder explored. It is also "elephant country" with the potential for very largediscoveries in both precious and base metals. In 2003, Persian Gold entered Iranwith a clear strategy, focusing on the possibility of discovering multi millionounce gold deposits associated with silica and alunite. That work is ongoing andhas now reached the stage of sampling and trenching a number of specifictargets. Our presence in the country has brought considerable benefits. By maintaining astaff of experienced local geologists Persian Gold has been given theopportunity to evaluate a series of further investments. To date, we haveoptioned a gold project with multi million ounce potential near Yazd, and we areassessing several other gold and base metal projects. Whilst there are low levels of international mining involvement in Iran, we havefound an operating and legislative environment that is extremely co-operative.As an Irish based group we have received excellent support from the national andregional authorities. A 1998 law guarantees title and provides a good workingframework for our activities in the region. Operationally, there is a top class Geological survey in Tehran, which includesexcellent computerised facilities and a staff willing and able to provide a fastand efficient service. The Persian Gold strategy is to work as much as possiblewith local partners so our projects will be joint ventures and, in generalmanaged, by Iranians. Takestan, Northwestern Iran In 2004, based on satellite imagery, Persian Gold applied for, and obtainedexploration concessions covering 1800 sq km in the Takestan area of Iran. Thisarea is thought to contain the second largest know deposits of alunite in theworld. The target, was and is, a large open castable gold deposit associatedwith alunite and silica. We are looking for deposits similar to the Yanacochagold/alunite mine in Peru. During the first year of exploration we surveyed the ground and selected areasfor soil and rock sampling. Roughly 3000 samples were processed in Tehran andanalysed in Europe for a suite of indicator minerals. Gold traces were found inup to 30% of the samples. Following a review of the findings, Persian Gold applied for 8 explorationlicences covering 320 sq kms of the area. Advanced work, mapping, trenching andsampling, has commenced on two areas Twin Hills and Zehabad. Drilling isanticipated within months. Chah-e-Zard, Yazd, Central Iran Our presence in Tehran gives us a profile which has led to a stream of potentialprojects in a variety of minerals. The opportunity at Chah-e-Zard, stood out.This area, with a known mining history and some gold prospecting, hascharacteristics which attracted our interest. With the agreement of the owner we sampled the project. Results were positiveand significantly complemented results from earlier exploration. The potential resource is large, easily accessible and will be inexpensive tomine and process. We have an option to acquire 70 % of the project which can beexplored all year. Chah-e-Zard, if the exploration results remain positive, hasthe potential to be a large heap leachable producer. Finance The enclosed results illustrate that Persian Gold is a tightly run operation.Funds raised are being spent on the ground not on overheads. We have adequate funding for our current exploration activities. Explorationsuccess which leads to an intensive drilling programme and/or the acquisition oflate stage or producing assets may result in a need for further finance. Prospects The prospects for 2006 and onwards are positive. Persian Gold is a uniqueinvestment for the London Market because: • We have "first mover advantage" in a highly prospective and co-operative resources province. • Operationally we are striding ahead with: • Imminent drilling of our gold associated with alunite prospect • Exploration on a potential multi million oz gold prospect - results expected in Q3 • Several promising gold and base metal leads to evaluate • A supportive commodity price environment I would like to thank the staff and shareholders of Persian Gold during what hasbeen an eventful year. I am confident that our two years of operational andcorporate development will provide a bedrock for success in the future. John Teeling, Chairman15th June 2006 PERSIAN GOLD PLC PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2005 Period from Year 18/11/2003 ended to 31/12/2005 31/12/2004 £ £ TURNOVER - - Cost of sales - - GROSS PROFIT - - Cost of admission to AIM (100,474) - Administrative expenses (75,343) (60,216) OPERATING LOSS - CONTINUING OPERATIONS (175,817) (60,216) Interest receivable and similar income 14,395 - Interest payable and similar charges (782) - LOSS ON ORDINARY ACTIVITIESBEFORE TAXATION (162,204) (60,216) Tax on loss on ordinary activities - - LOSS ON ORDINARY ACTIVITIES AFTERTAXATION FOR THE FINANCIAL YEAR (162,204) (60,216) LOSS PER SHARE (0.30p) (2.78p) LOSS PER SHARE - diluted (0.30p) (2.78p) The company has no recognised gains or losses other than those disclosed in theprofit and loss account for the year. The results arise from continuingactivities. PERSIAN GOLD PLC BALANCE SHEET AS AT 31 DECEMBER 2005 31/12/2005 31/12/2004 £ £ FIXED ASSETS Intangible assets 258,606 81,419 CURRENT ASSETS Debtors 3,283 1,000Cash at bank 924,878 269,683 928,161 270,683 CREDITORS : (Amounts falling due within one year) (25,346) (20,998) NET CURRENT ASSETS 902,815 249,685 TOTAL ASSETS LESS CURRENT LIABILITIES 1,161,421 331,104 CAPITAL AND RESERVES Called-up share capital 139,482 129,482Share premium 1,244,359 261,838Profit and loss account - (deficit) (222,420) (60,216) SHAREHOLDERS' FUNDS - ALL EQUITY 1,161,421 331,104 PERSIAN GOLD PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 Period from Year 18/11/2003 ended to 31/12/2005 31/12/2004 £ £ NET CASH OUTFLOW FROMOPERATING ACTIVITIES (173,752) 17,782 RETURNS ON INVESTMENTS ANDSERVICING OF FINANCE Interest paid and similar charges (782) -Interest received and similar income 14,395 - NET CASH INFLOW FROM RETURNS ONINVESTMENTS AND SERVICING OF FINANCE 13,613 - NET CASH OUTFLOW FROM CAPITALEXPENDITURE AND FINANCIAL INVESTMENT (160,139) 17,782 Payments to acquire intangible assets (177,187) (39,419) NET CASH OUTFLOW BEFORE FINANCING (337,326) (21,637) FINANCING: Issue of ordinary share capital for cash (net ofexpenses) 992,521 291,320 NET CASH INFLOW FROM FINANCING 992,521 291,320 INCREASE IN CASH 655,195 269,683 Note: 1. The results set out above are not full accounts as defined in S.254 of the Companies Act 1985. The auditors have made an unqualified non-standard report on the accounts for each of the years ended 31 December 2004 and 2005 under S.236 of the Companies Act 1985 which have been and will be filed with the registrar of Companies. 2. A copy of this announcement will be available at the offices of the Company 20 - 22 Bedford Row, London, WC1R 4J5 for 14 days from the date of this announcement. This information is provided by RNS The company news service from the London Stock Exchange